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Royal Caribbean profits fall 65% for first Quarter

MaritimeR&R
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nolesrule

nolesrule

Posted
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Reuters report -- guess the switcheroo announcements, dynamic dining and extreme pricing on some of their ships didn't get the reaction Royal Caribbean was expecting.

http://www.reuters.com/article/2014/04/24/royalcaribbean-results-idUSL3N0NF4NH20140424

 

Ummm, Q1 is January to March. I'm pretty sure that the Dynamic Dining announcement was in the last week of Q1, and the "switcheroo" announcement was in Q2.

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comxkid

comxkid

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Other items of note from the 1st quarter financials:

 

1) Six voyages were shortened or cancelled during the quarter. The net impact from these events is expected to be recovered within the fiscal year. These disruptions adversely affected net revenues for the quarter due to refunds and future cruise credits.

 

2) Operating costs (excluding fuel) were up 1.3% over the comparable period for the prior year. These increases were pretty much across the board....except for food costs. Food expense actually decreased from $119.5 million for the first quarter of 2013 to $118.1 million for the first quarter of 2014.

 

3) Ticket revenue was in line with expectations across most key itineraries and as expected, Caribbean yields were down slightly while yields in other itineraries were up nicely.

 

4) On-board revenue yields increased 3.4% as the company continued to see the benefit of our fleet upgrades and onboard revenue management initiatives.

 

5) The number of passengers carried during the 1st quarter of 2014 was 1,278,234 compared to the 1,261,292 that were carried during the 1st quarter of 2013.

 

6) Average occupancy fell from 104.9% for 1st quarter 2013 to 104.5% for 1st quarter 2014.

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MaritimeR&R

MaritimeR&R

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Read that as well and forgot to include it in my post. However, I tend to think that whereas it is more than likely that the voyage disruptions (they always have some) played a big role in the drop, the other things I listed were likely contributors as well.

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ryano

ryano

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Ummm, Q1 is January to March. I'm pretty sure that the Dynamic Dining announcement was in the last week of Q1, and the "switcheroo" announcement was in Q2.

 

Come on now! Dont let facts get in the way of a good "story"! The news media never does! :D

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MaritimeR&R

MaritimeR&R

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Other items of note from the 1st quarter financials:

 

1) Six voyages were shortened or cancelled during the quarter. The net impact from these events is expected to be recovered within the fiscal year. These disruptions adversely affected net revenues for the quarter due to refunds and future cruise credits.

 

2) Operating costs (excluding fuel) were up 1.3% over the comparable period for the prior year. These increases were pretty much across the board....except for food costs. Food expense actually decreased from $119.5 million for the first quarter of 2013 to $118.1 million for the first quarter of 2014.

 

3) Ticket revenue was in line with expectations across most key itineraries and as expected, Caribbean yields were down slightly while yields in other itineraries were up nicely.

 

4) On-board revenue yields increased 3.4% as the company continued to see the benefit of our fleet upgrades and onboard revenue management initiatives.

 

5) The number of passengers carried during the 1st quarter of 2014 was 1,278,234 compared to the 1,261,292 that were carried during the 1st quarter of 2013.

 

6) Average occupancy fell from 104.9% for 1st quarter 2013 to 104.5% for 1st quarter 2014.

 

Good information: was not published at the time of my post -- only the initial reuters article.

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Cruising89143

Cruising89143

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Reuters report -- guess the switcheroo announcements, dynamic dining and extreme pricing on some of their ships didn't get the reaction Royal Caribbean was expecting.

http://www.reuters.com/article/2014/04/24/royalcaribbean-results-idUSL3N0NF4NH20140424

 

Sorry but doubt any of those things listed had anything to do with the report.

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nolesrule

nolesrule

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Yes, that is the initial report I read. The main purpose of the post was to report the drop. The other was as I said, "a guess."

 

But when you speculate, you at least need to make an effort to correlate your reasoning with the timeframe of the report.

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kwazi07

kwazi07

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Reuters report -- guess the switcheroo announcements, dynamic dining and extreme pricing on some of their ships didn't get the reaction Royal Caribbean was expecting.

http://www.reuters.com/article/2014/04/24/royalcaribbean-results-idUSL3N0NF4NH20140424

 

I am really agreeing with the extreme prices, have noticed some crazy ones.

 

Sent from my Nexus 7 using Tapatalk

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Irene7

Irene7

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Posted
Reuters report -- guess the switcheroo announcements, dynamic dining and extreme pricing on some of their ships didn't get the reaction Royal Caribbean was expecting.

http://www.reuters.com/article/2014/04/24/royalcaribbean-results-idUSL3N0NF4NH20140424

 

Any idea of how it compares to NCL report. I thought I heard that they did well and if they did it could be because, they kept releasing info on their news ships consistently making people more and more excited, their prices are not bad at all especially for a new build, no switch-a-roonies made. This of course is just a guess.

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cruisnseas

cruisnseas

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Read that as well and forgot to include it in my post. However, I tend to think that whereas it is more than likely that the voyage disruptions (they always have some) played a big role in the drop, the other things I listed were likely contributors as well.

 

How could they have possibly impacted Q1 profits? DD wasn't announced until the end of Q1 (which gives it no time to impact Q1 profits) and the "switcheroo" you mention was announced in Q2.

 

Please do not speculate unless you have some facts on your side. Someone will read what you said, read nothing else and believe it even though it is wrong.

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TC1957

TC1957

Posted
Posted
Other items of note from the 1st quarter financials:

 

1) Six voyages were shortened or cancelled during the quarter. The net impact from these events is expected to be recovered within the fiscal year. These disruptions adversely affected net revenues for the quarter due to refunds and future cruise credits.

 

2) Operating costs (excluding fuel) were up 1.3% over the comparable period for the prior year. These increases were pretty much across the board....except for food costs. Food expense actually decreased from $119.5 million for the first quarter of 2013 to $118.1 million for the first quarter of 2014.

 

3) Ticket revenue was in line with expectations across most key itineraries and as expected, Caribbean yields were down slightly while yields in other itineraries were up nicely.

 

4) On-board revenue yields increased 3.4% as the company continued to see the benefit of our fleet upgrades and onboard revenue management initiatives.

 

5) The number of passengers carried during the 1st quarter of 2014 was 1,278,234 compared to the 1,261,292 that were carried during the 1st quarter of 2013.

 

6) Average occupancy fell from 104.9% for 1st quarter 2013 to 104.5% for 1st quarter 2014.

 

Sorry...it is impossible to "recover" lost revenue. Once an earnings opportunity is lost, it is lost forever. No matter how much you earn in later quarters you cannot "unlose" revenue.

 

Now...you can still meet your annual revenue projections and budgets as most companies "sandbag" a little (we bean counters prefer to say we were being conservative).

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kwazi07

kwazi07

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How and when does RCI even book their revenues for reservations? Is it based on initial reservation dates? Payment dates? When the ships sail?

 

I am guessing at sailing because there may be last minute bookings.

 

Sent from my Nexus 7 using Tapatalk

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TC1957

TC1957

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How and when does RCI even book their revenues for reservations? Is it based on initial reservation dates? Payment dates? When the ships sail?

 

From an accounting standpoint...it should be when the ship sails. Anything else would violate the convention of conservatism and not properly match revenue and expenses.

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hellsop

hellsop

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Posted
Sorry...it is impossible to "recover" lost revenue. Once an earnings opportunity is lost, it is lost forever. No matter how much you earn in later quarters you cannot "unlose" revenue.

 

Now...you can still meet your annual revenue projections and budgets as most companies "sandbag" a little (we bean counters prefer to say we were being conservative).

 

It's a cost recovery, which is to say that they're spreading some of the accounting of the expense of those cancelled and refunded voyages over the course of the fiscal year. Something a bean counter should know about. :)

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MaritimeR&R

MaritimeR&R

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Posted (edited)
How could they have possibly impacted Q1 profits? DD wasn't announced until the end of Q1 (which gives it no time to impact Q1 profits) and the "switcheroo" you mention was announced in Q2.

 

Please do not speculate unless you have some facts on your side. Someone will read what you said, read nothing else and believe it even though it is wrong.

 

IF THEY READ WHAT I SAID, then the word "guess" should have been clearly visible to them. I saw no reason to define the word "guess." Insofar as speculating about a topic, these boards are filled with the thoughts/opinions of others on a topic, everything from which room or drink is best to "should we do this" or "should we do that."

I think (and please note; this is my opinion) you should find another post to critique.

Edited by MaritimeR&R
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